informedix marketing research, inc. 20141 emerging markets and the role of market research steven...
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InforMedix Marketing Research, Inc. 2014 1
Emerging Markets and the Role of Market Research
Steven FullerInforMedix Marketing Research, Inc.
2014
Worldwide Experience
About 30% of our work is conducted outside the US.
Contacts and expertise are in place in …
• Europe (UK, Germany, France, Italy, Spain, Nordics, etc.)
• Latin America Mexico Brazil Argentina Chile
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• Asia Japan China India Singapore
What is an “Emerging Market”?
An emerging market economy (EME) is defined as an economy with low to middle per capita income. • The term was coined in 1981 by Antoine W. Van Agtmael of the
International Finance Corporation of the World Bank.
EMEs are characterized as transitional, meaning they are in the process of moving from a closed economy to an open market economy while building accountability within the system.
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Reem Heakal, August 11, 2009
What is an “Emerging Market”?
Emerging markets, also known as emerging economies or developing countries, are nations that are investing in more productive capacity. They are moving away from their traditional economies that have relied on agriculture and the export of raw materials.
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Kimberly Amadeo, President, WorldMoneyWatch.com
What is an “Emerging Market”?
This term is used loosely to describe countries that are exhibiting increasing growth in purchasing and usage of a product of interest – and are crossing over from a point where the market is too small or too difficult to work in, to one where conducting business there yields a new and attractive marketplace.
“Emergence” among markets for medical products, supplies and services is normally associated with • growth in affluence of the population, • increasing stability of government structures, and • policies and attitudes that promote better healthcare than in
the past.
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Steve Fuller InforMedix Marketing Research
EME Characteristics
1. Lower-than-average per capita income
2. Rapid change to a more industrialized economy• U.S., Germany, U.K., Japan: 1-2%• Turkey, Russia, Mexico and South Africa: 3-4%• Brazil: 4.5%• China, India: 8%
3. Economic & political risk / volatility• Higher-than-average return for investors
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Examples ….
BRIC• Brazil, Russia, India, China
MSCI Index
• Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, South Korea, Taiwan, Thailand, Turkey
Others (HBS)
• Argentina, Hong Kong, Jordan, Kuwait, Saudi Arabia, Singapore, UAE, Vietnam
CIVETS• Colombia, Indonesia, Vietnam, Egypt, Turkey, South Africa
PINE• Philippines, Indonesia, Nigeria, Ethiopia
Fragile Five
• Brazil, India, Indonesia, South Africa, Turkey
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How are these locations different from “developed markets”?
Patient age, Disease mix
Healthcare infrastructure
Insurance? Who pays for healthcare?
Role of government
Decision-makers (diagnostics and treatment)
Role of local manufacturers and distributors
Spend level on healthcare
etc.
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How is medical technology adopted in Emerging Markets?
1. Direct movement of products from developed markets
High-end
Used/refurbed
Low-end product
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In Vivo: The Business and Medicine Report 2012
How is medical technology adopted in Emerging Markets?
2. Low-cost copies by in-country manufacturers
Low-cost supply chain
Low-cost materials
Low-cost labor (mfg. and distribution)
Limited regulation & validation
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How is medical technology adopted in Emerging Markets?
3. Market-specific innovation
By multi-nationals
By locals
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Multinationals vs. LocalsMedical Device Growth in Emerging Markets (McKinsey & Co.)
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Market ResearchAvailable Information Sources
Off-the Shelf Reports
Individuals with Local Expertise
Your distributors
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Market ResearchFormalized Custom Investigations
Learn specifically about opportunities for your own particular product or service areas
Reduce the risk of acting on information that comes from a limited viewpoint
More information flows to professional market researchers
Apples-to-apples comparisons between several targeted markets
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Learn About “the Local System”
Who Does What in this Medical Marketplace?
• The Role of Company Sales Representatives
• The Role of Distributors
• The Role of Hospital / Facility Administration and Purchasing
• The Role of the Government and its Agencies
Where Does the Money Flow?
• Patient payments, Insurance, Government subsidies
• Payment for Disposables and Services
• Payment for Capital Goods
• Purchase / Lease / Rental Contract
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Learn About the Medical Device Marketplace
What Kinds of Facilities Will Be Our Customers?
• Hospitals
• Physicians
• Non-Hospital Care Sites
• Other Types of Customers
How Does Product Evaluation and Purchasing Work?
• Purchasing Methods and Decision Makers
• How to Engage with a New Customer Site
• Vendor Selection Factors
• Product Selection Factors
• Pricing “Tiers” and Budget Approvals
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Learn About Unmet Needs
What are the Unmet Needs in this New Market?
• Current Patient Evaluation and Pathways of Care
• Competitive Products and Services in Use
• Key Challenges, Costs, Inefficiencies with current products
• Medical Risks, Reasons for Morbidity and Mortality with current products
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Learn What Makes Prospects into Customers
What Else Can We Do to Facilitate Use and Purchasing of Our Products/Services?
• Multiproduct Contracting
• Ancillary Support Services from Vendors
• Local Manufacturing
• Is there a better way?
What Else Do I Need to Know About Doing Business
Here?
• Regulatory Environment
• Relevant Cultural Issues
• Attitudes Toward Foreign (e.g. US) Based Vendors
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InforMedix Experience, Qualitative Research China
• In-facility interviews with purchasers and surgeons
India• In-office interviews with surgeons
Mexico• In facility & in-office with purchasers and surgeons
Brazil In facility & in-office with purchasers and surgeons
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Market Research in Worldwide Emerging Healthcare Markets: Understanding Your Company’s Opportunity Steven J. Fuller, InforMedix Marketing Research, Inc.
Market Research Challenges in Emerging Healthcare Markets
What is the goal?
• To participate as the market grows? screen for typical customers
• To serve the undeveloped parts of the healthcare system? screen for unserved customers
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Market Research Challenges in Emerging Healthcare Markets
Is there a bias for or against “outsiders”?
• Who should moderate?
• How should assistants be trained?
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Market Research Challenges in Emerging Healthcare Markets
How good is the market research infrastructure?
• Planning
• Screening
• Scheduling
• Facilities
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Market Research Challenges in Emerging Healthcare Markets
Are we communicating?
• Language
• Terminology
• Product descriptions & usage
• Should we assume they know what we mean?
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